How to Calculate Break-Even Point

Break-even formula

Break-even units = fixed costs ÷ contribution per unit.

Contribution per unit = selling price − variable cost per unit.

Example

If fixed costs are 1000 and each sale contributes 20 after variable cost, break-even is 50 units.

Practical use

This helps estimate whether a product, service or small project can cover its costs.

Back to guides